Inequality - OECD

Inequality is a multi-dimensional challenge, it goes beyond income and it affects the well-being of our people. Evidence now tells us that the levels of ... 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"Wehavereachedatippingpoint.Inequalitycannolongerbetreatedasanafterthought.Weneedtofocusthedebateonhowthebenefitsofgrowtharedistributed.Ourreport‘InitTogether’andourworkoninclusivegrowthhaveclearlyshownthattheredoesn’thavetobeatrade-offbetweengrowthandequality.Onthecontrary,theopeningupofopportunitycanspurstrongereconomicperformanceandimprovelivingstandardsacrosstheboard!" OECDSecretary-General      TheOECDCentreforOpportunityandEqualityisaplatformforpromotingandconductingpolicy-oriented researchonthetrends,causesandconsequencesofinequalitiesinsocietyandtheeconomy, andaforumtodiscusshowpoliciescanbestaddresssuchinequalities.TheworkoftheCentrecanbefoundbelow. Inequalityand... Income Gender Health Education Tax Regions Well-being Innovation   INEQUALITYANDINCOME IncomeinequalityinOECDcountriesisatitshighestlevelforthepasthalfcentury.Theaverageincomeoftherichest10%ofthepopulationisaboutninetimesthatofthepoorest10%acrosstheOECD,upfromseventimes25yearsago.OnlyinTurkey,Chile,andMexicohasinequalityfallen,butinthelattertwocountriestheincomesoftherichestarestillmorethan25timesthoseofthepoorest.Theeconomiccrisishasaddedurgencytotheneedtoaddressinequality.Uncertaintyandfearsofsocialdeclineandexclusionhavereachedthemiddleclassesinmanysocieties.Arrestingthetrendofrisinginequalityhasbecomeapriorityforpolicymakersinmanycountries. Inemergingeconomies,suchasChinaandIndia,asustainedperiodofstrongeconomicgrowthhashelpedliftmillionsofpeopleoutofabsolutepoverty.Butthebenefitsofgrowthhavenotbeenevenlydistributedandhighlevelsofincomeinequalityhaverisenfurther.Amongthedynamicemergingeconomies,onlyBrazilmanagedtostronglyreduceinequality,butthegapbetweenrichandpoorisstillaboutfivetimesthatintheOECDcountries. TheOECDanalysestrendsininequalityandpovertyforadvancedandemergingeconomies.Itexaminesthedriversofgrowinginequalities,suchasglobalisation,skill-biasedtechnologicalchangeandchangesincountries’policyapproaches.Anditassessestheeffectivenessandefficiencyofawiderangeofpolicies,includingeducation,labourmarketandsocialpolicies,intacklingpovertyandpromotingmoreinclusivegrowth.    KEYPUBLICATIONS UnderPressure:TheSqueezedMiddleClassApril2019 ABrokenSocialElevator?HowtoPromoteSocialMobilityJune2018 PreventingAgeingUnequallyOctober2017 IncomeInequality-TheGapbetweenRichandPoorDecember2015 InItTogether:WhylessInequalityBenefitsAllMay2015 AllonBoard:MakingInclusiveGrowthHappen2015 Minimumwagesafterthecrisis:MakingthempayMay2015 DividedWeStand:WhyInequalityKeepsRising2011  OTHERREPORTS InequalitiesinemergingeconomiesDecember2018 InequalitiesinhouseholdwealthacrossOECDcountriesJune2018 Inequality:AhiddencostofmarketpowerFebruary2017 IncomeinequalityremainshighinthefaceofweakrecoveryNovember2016 Trade,globalvaluechainsandwage-incomeinequality 2015 Pro-growthReforms:theirImpactonIncomeInequalityandHouseholdEconomicVulnerability2015 Theeffectofpro-growthstructuralreformsonincomeinequality,Chapter2ofEconomicPolicyReforms2015,GoingforGrowth2015 FinancialSectorPayandLabourIncomeIneqaulity:EvidencefromEurope2015 HouseholdFinanceandIncomeInequalityintheEuroArea2015 FinanceandincomeinequalityinOECDcountries2015     Data     Formoredataoninequality,visitthe OECDIncomeDistributionDatabase OECD'S"COMPAREYOURINCOME"WEBTOOL FURTHERREADING Incomedistributionandpoverty   INEQUALITYANDGENDER Breakingdownbarrierstogenderequalityineducation,employmentandentrepreneurshipwouldcreatenewsourcesofeconomicgrowthandhelpmakebetteruseofeveryone’sskills. GreatereducationalattainmenthasaccountedforabouthalfoftheeconomicgrowthinOECDcountriesinthepast50years,inlargepartthankstoanincreaseingirlsreachinghigherlevelsofeducationandgreatergenderequalityinthenumberofyearsspentinschool.Companieswithahigherproportionofwomenintopmanagementdobetterthanothers. Butonaverage,inOECDcountries,womenearn16%lessthanmen,andfemaletop-earnersarepaid21%lessthantheirmalecounterparts.Womenoccupylessthanafifthofparliamentaryseatsaroundtheworldandtheiraccesstotoppositionsincompaniesisevenworse. Theimpactofpayinequalityisdramaticoverawoman’slifetime.Havingworkedlessinformalemployment,buthavingcarriedoutmuchmoreunpaidworkathome,manywomenwillretireonlowerpensionsandseeouttheirfinalyearsinpoverty.Livinganaverageofnearly6yearslongerthanmen,womenover65aretodaymorethanoneandahalftimesmorelikelytoliveinpovertythanmeninthesameagebracket.        KEYPUBLICATIONS Thepursuitofgenderequality:Anuphillbattle2017 ClosingtheGenderGap-ActNow2012 WhatLiesBehindGenderInequalityinEducation?2015 Women,GovernmentandPolicyMakinginOECDCountries:FosteringDiversityforInclusiveGrowth2014 WomeninPublicLife:Gender,LawandPolicyintheMiddleEastandNorthAfrica2014 RecommendationoftheCouncilonGenderEqualityinEducation,Employment,andEntrepreneurship2013    DATA Genderequalitydata   FURTHERREADING OECDworkongender Womeningovernment   INEQUALITYANDTAX Whileincreasinginequalitypresentskeychallengesforallpolicymakers,taxpolicyhasaparticularlyimportantroleinaddressinginequalityandboostingeconomicgrowth.Aspre-taxincomeinequalityincreases,theroleoftaxpolicywillonlygrowmoreimportant.Maintainingtheoverallprogressivityofthetaxcodeisakeypriorityinthisregard.Moreover,countriesareincreasinglycomingtogethertoco-operateoninternationaltaxissues,to reducetheabilityofhigh-wealthindividualsandcompaniestoshiftassetsandincomeoffshoretoavoidtaxation.AwidevarietyofotherpoliciesarealsoontheagendaformanyOECDcountries. Examplesofpoliciesthatcountriescouldconsiderimplementingtotackleinequalityinclude:   Reducing socialsecuritycontributionsandpayrolltaxes onlow-incomeworkers,toencouragethemtostayinthelabourforceandboosttheirskills,andtomakethemmoreattractiveforcompaniestohire.  Abolishingorscalingbackawiderangeof taxdeductions,creditsandexemptions whichbenefithighincomerecipientsdisproportionately; Taxingasordinaryincomeallremuneration,including fringebenefits,carriedinterestarrangements,andstockoptions; Consideringshiftingthetaxmixtowardsagreaterrelianceon recurrenttaxesonimmovableproperty; Reviewingtheefficacyandeffectivenessof wealthandinheritancetaxes; Examiningwaysto taxcapitalincomeatthepersonallevel atslightlyprogressiverates,andaligntopcapitalandlabourincometaxrates; Increasing transparencyandinternationalco-operation ontaxrulestominimise“treatyshopping”(whenhigh-incomeindividualsandcompaniesstructuretheirfinancestotakeaccountoffavourabletaxprovisionsindifferentcountries)andtaxoptimisation; Broadeningthetaxbaseoftheincometax toreduceavoidanceopportunitiesandtherebytheelasticityoftaxableincome; Developingpoliciestoimprove transparencyandtaxcompliance,includingcontinuedsupportoftheinternationalefforts,ledbytheOECD,toensurethe AutomaticExchangeofTaxInformation betweentaxauthorities. KEYPUBLICATIONS BEPS2015FinalReports2015 TrendsinTopIncomesandtheirTaxPolicyImplication2011 TopIncomesandTaxationinOECDCountries:Wasthecrisisagamechanger?2014 StandardforAutomaticExchangeofInformation2014   INEQUALITYANDHEALTH ProgressinhealthstatusandlifeexpectancyinOECDcountriesandinemergingeconomieshasbeenremarkable,butnoteven.Largeinequalitiesexistnotonlyacrosscountries,butalsobetweenpopulationgroupswithineachcountry.Inequalitiesinhealthstatusareduetomanyfactors,includingdifferencesinlivingandworkingconditionsandinbehaviouralfactors,butalsoinaccesstoandqualityofhealthcare.Despitesignificantprogressinmostcountries,accesstoqualityhealthcarevariesacrossthesocio-demographicgroups,includingbysex,age,geographicareaandforfinancialandnon-financialreasons. Greateremphasisonpublichealthanddiseaseprevention,alongwithimprovedaccesstohealthservices,canimprovethehealthstatusandlifeexpectancyofdisadvantagedgroups.MostOECDcountrieshaveendorsed,asmajorpolicyobjectives,thereductionofinequalitiesinhealthstatusandtheprincipleofequalaccesstohealthcarebasedonneed.TheOECDregularlymonitorstowhatextentpoliciestoreducehealthinequalityachievetheirobjectivesandassessesthepotentialbenefitsandcostsofvariouspolicyinterventions. KEYPUBLICATIONS   PreventingAgeingUnequally2017 InequalitiesinlongevitybyeducationinOECDcountries2017 AccesstoCarechapterinHealthataGlance:Europe20162016 SocialInequalitiesinObesityandOverweightin11OECDcountries2013 Income-relatedinequalitiesandinequitiesinhealthcareservicesutilisationin18selectedOECDcountries2013 FURTHERREADINGANDDATA OECDworkonhealthandinequality EVENTS ImpactofInequalityontheFutureElderly-PolicyToolsandActions5-6April2018   INEQUALITYANDEDUCATION Inequalitieswhichsurfaceinthejob-marketareoftenentrenchedduringeducation,whichputsthoseatthebottomataseriousdisadvantage.Poorerstudentsstruggletocompetewiththeirwealthierclassmatesandgoontolowerlevelsofeducationalattainment,smallersalaries,andmoststrikingly,shorterlives.Datafrom15OECDcountriesshowsthat,atage30,peoplewiththehighestlevelsofeducationcanexpecttolive,onaverage,sixyearslongerthantheirpoorlyeducatedpeers. Investingineducationandtrainingwillpaylong-termdividendsfortheeconomy,forindividualwell-being,andfortheoverallprosperityofoursocieties.Reachingexcellencethroughequityispossible.Forthat,weneedtodevelopmoreambitiouseducationandskillspolicies.Ourevidence-based PISA and PIAAC initiativeshighlightlargeinequalitiesineducationandskills.Theyalsodemonstratethattherearemajorpotentialbenefitstoequipdisadvantagedgroups,suchaslowsocial-backgroundstudentsandlow-skilledworkers,toacquirebetterskillsandcompeteforbetter-payingjobs.   KEYPUBLICATIONS Educationalopportunityforall2017 SkillsandWageInequality2015 Poorlyskilledadults:aneglectedfactorinincomeinequality2014 Howcloselyisthedistributionofskillsrelatedtocountries’overalllevelofsocialinequalityandeconomicprosperity?2014 Skilluporloseout2013 Howcaneducationhelptacklerisingincomeinequality?2012 SkillsOutlook HowPronouncedIsIncomeInequalityAroundtheWorld-AndHowCanEducationHelpReduceIt?2012 FURTHERREADING OECDworkoneducation OECDworkonskills PISA     INEQUALITYANDINNOVATION Innovationandentrepreneurshiparemajorpotentialsourcesofgrowthwithstrongspilloverbenefitsacrosstheeconomy.Butinthepast,innovationpolicieshavegenerallybeenassessedintermsoftheirimpactonaggregateincomegrowth.However,theseimpactsareunlikelytobe“neutral”astheymightaffectindividualsandgroupsdifferently(“socialinclusiveness”).Allindividualsandbusinessesarenotonanequalfootingregardinginnovationcapacitiesandaccesstothecorrespondingbenefits(“industrialinclusiveness”).Moreover,policiesaimedatpromotinginnovationaffectthegeographicdimensionsofindustrialandsocialinequalitiesandunderpininequalitiesbetweenurbanandrural(“territorialinclusiveness”).   Asaresult,itisessentialtoconsiderthesocial,industrialandterritorialimplicationsofinnovationpoliciesaswell.Thisisespeciallyimportantifthechangesinherentintheinnovationprocessexacerbateincomedisparitiesbycreatingopportunitiesprimarilyforhigh-skilledworkers.Inclusiveinnovationpolicies–suchasimplementingwell-designedpoliciestosupportyoungfirms,simplifyregistrationproceduresforstart-ups,andimproveaccesstofinanceandotheressentialbusinessservices–canhelpmitigatethesecosts.  KEYPUBLICATIONS InnovationPoliciesforInclusiveGrowth2015 MakingInnovationPolicyWork:LearningfromExperimentation2014 Innovationandinclusivedevelopment2013 EVENTS SymposiumonInnovationandInclusiveGrowth20-21March2014   INEQUALITYANDREGIONS Inequalityiscloselylinkedtowherepeopleliveandwork.Theeconomiccrisishaswidenedinequalitiesacrossregionswithincountries.Thespatialconcentrationofincomeinequalityhasbeenincreasingeverywhere.Inadvancedeconomies,incomeinequalityishighestwithinlargecities,withlargedisparitiesinincomefromoneareaofacitytoanother.Inthedevelopingworld,the“urbanadvantage”remainsstrong:manymorechildreninruralareasdiebeforetheageof5duetolackofaccesstobasichealthcareandpoorlyeducatedmothers.Addressingregionaldisparitiesisakeyelementofastrategytoreduceinequalityandincreasewellbeing. Evidenceshowsthatthefactorsthatmostinfluencepeoples’well-beingarelocalissues,suchasemployment,accesstohealthservices,pollutionandsecurity.So,thepolicyresponsesmustalsobelocallytargeted.Policiesthattakebetteraccountofregionalproblemsandneedsmayhaveagreaterimpactonimprovingwell-beingforthecountryasawholebytacklingthesourcesofinequalitymoredirectly.Buttoeffectivelytargetpolicies,governmentsneedthetoolstofullyunderstandlocalconditionsandtheexpectationsoftheircitizens.Thepublication"How'sLifeinYourRegion",whichwillbelaunchedinSeptember2014,willhelppolicymakersto: enhancingtherelevanceofsub-nationalmeasuresandanalysisforaddressingpolicyissues;  improvingourunderstandingofthelinksbetweenpolicyactionsimplementedatthelocalandregionallevelandoutcomesexpressedintermsofpeople’swell-being.  KEYPUBLICATIONS RegionsataGlance RegionalOutlook How'sLifeinYourRegion MeasuringIncomeInequalityandPovertyattheRegionalLevelinOECDCountries2015 DATA Regionalandmetropolitanstatisticsandindicators INEQUALITYANDWELL-BEING Inequalityisakeydriverofindividualandcountry’swell-beingandthisiswhyinequalityisoneofthedistinctivefeaturesoftheOECDwell-beingmeasurementframeworkadoptedintheOECDBetterLifeInitiative. ThereportHow’sLife?2017,forinstance,includesanin-depthreviewofwell-beinginequalitiesandhowtomeasurethem,andshowsthatgapsinpeople’sachievementsandopportunitiesextendrightacrossthe11dimensionsofwell-being(incomeandwealth;jobsandearnings;housing;healthstatus;work-lifebalance;educationandskills;socialconnections;civicengagementandgovernance;environmentalquality;personalsecurity;andsubjectivewell-being).Itexposesdivisionsaccordingtoage,gender,education,andwealth,andrevealspocketsofinequalityinallOECDcountries.Italsobringstolightthemanywell-beingdisadvantagesthatmigrantsfaceinadaptingtolifeabroad.Additionally,thereportexaminesgovernanceasseenfromthecitizen’sperspective,revealingdividesbetweenpublicinstitutionsandthepeopletheyserve. TheBetterLifeIndex,whichisanotherpillaroftheOECDBetterLifeInitiative,alsodocumentsinequalitiesinselectedwell-beingdimensions.Itnotablyshowsgenderinequalitiesinwell-beingandwell-beingdisparitiesduetosocio-economicgaps.     KEYPUBLICATIONS How’sLife?2017   ClickontheimagetoaccesstheBetterLifeIndex       RelatedDocuments